Two traders, whose properties were demolished by Kenya Railways Corporation in Nakuru, have sued the state-owned firm demanding Ksh400 million in compensation.
According to reports by the Nation, the two businessmen, who ran Nakel Investment Limited and Falcon Service Station Limited, claimed that their businesses were demolished on 2.7 acres of land located along Geoffrey Kamau Way.in Nakuru town.
On Friday, December 4, the Environment and Land Court issued orders temporarily barring Kenya Railways from using or transferring the disputed piece of land until the case filed by the two traders is heard and determined
Justice Dalmas Ohungo restrained the corporation and its agents from occupying, alienating, leasing, constructing the land.
“A temporary injunction is hereby issued restraining the Kenya Railways, by themselves or their agents, from trespassing, alienating, constructing, leasing or transferring the parcels of land located within Nakuru town, pending hearing and determination of this application,” read the ruling by Justice Ohungo.
Falcon wants Ksh312,094,000 in compensation for special damages to a motor vehicle yard, tyre centre and the petrol station while Nakel Investments Limited, wants Sh84,350,000 to cater for demolition of Mercy International Business, two car wash bays, premises, machines and shops.
The two companies are also seeking general damages, loss of rental income and profits and cost of the suit.
Kenya Railways in its defense argued that it repossessed the land, which was leased to six investors for 25 years, after issuing a 90-day vacate notice to the traders.
According to the corporation, the terms of the lease were that it may repossess the land after giving a notice of 90 days.
The companies on their side argued that although the property belonged to the corporation, the businesses had not encroached on the railway line and, therefore, the evictions and destruction of their property was illegal.